A £20m funding boost awarded to Peterhead is now at risk due to over-promising from the last government, according to Scottish secretary Ian Murray.
In a letter written to North-east MSP Liam Kerr, Mr Murray suggested previous ministers had "in some cases made promises to communities they knew they could not keep".
He added that "difficult choices will need to be made", just six months after the town was awarded the £20m boost by then-Chancellor Jeremy Hunt.
That money was expected to be used on a wide range of things, with ideas ranging from a new town centre entertainment venue, more playparks and a revamp of Lido.
But Mr Kerr has described the remarks made by the Scottish secretary as a "strong signal that Labour aren’t going to honour the previous UK Government’s plan for Peterhead".
Read the full story in today's Press & Journal.